Treatment of share sale income as capital gain, not business income

The Income Tax Appellate Tribunal affirmed that the income generated from the sale of shares should be treated as long term capital gain, not business income. The Tribunal considered factors such as the assessee's main income sources, the nature of the securities transactions, the intention of long term investment, and the absence of substantial trading activity. As a result, the appeal was dismissed as no question of law was found to arise.

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Issues involved: Determination of nature of income from sale of shares - whether long term capital gain or business income.

Summary:
The assessee generated income from the sale of shares in the relevant assessment year, claiming it as long term capital gain. The Assessing Officer treated it as business income, but the CIT(A) reversed the order, considering it as long term capital gain. The Income Tax Appellate Tribunal affirmed this decision, noting that the assessee's main income sources were interest on ICD and dividends on shares. The purchase and sale of securities were not related to the usual trade or business. The assessee held shares as investments, not as stock in trade, and the funds were from its own capital, not borrowed. The shares were held for multiple accounting periods, indicating long term investment intention. The Tribunal found no substantial activity scale in the sale of shares. Consequently, no question of law arose, and the appeal was dismissed.

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